Yang’s decision comes after months of intense pressure from Yahoo’s board members and shareholders to step down following Yahoo's rejection of a US$47.5 billion acquisition bid from Microsoft, of which he played a pivotal role.
The deal would have valued Yahoo at US$33 a share, which Yang said undervalued the company. As of midday Wednesday, Yahoo was worth US$10.63 a share.
Yang also faced further scrutiny after a US$250-to-$450-million advertising deal with Google fell through earlier this month. The news came just after Yahoo released disappointing third-quarter results that included a 64-per cent drop in net income. In a cost-cutting measure, the company announced it would release 10 per cent of its international workforce - a loss of approximately 1,500 staff members.
The news came as Chinese reports cited rumours that Yahoo China may begin laying off a percentage of its staff within days. Yahoo China denied the reports.
According to the Yahoo, Yang will remain on the company’s board and assume the title of chief Yahoo.
A spokesman from Yahoo Southeast Asia said Yang’s decision to step down will not have an imminent affect on the company’s operations throughout Asia-Pacific.
‘We do not expect the CEO search to have any near-term impact on our business in the region. Yahoo will continue to focus on our existing plans for leveraging our world-class brand and industry-leading audience platform,” he said.
According to international reports, Yahoo will search for replacements both within and outside the company. Among those named on Yahoo’s supposed shortlist include Susan Decker, the company’s president and Jon Miller, former CEO of AOL.
